Use current property share to secure capital to buy a property?

mbmatey

Hi,

I am looking for some advice on my situation. I posted this in the mortgage section but perhaps it is more suited here and I can't find how to delete the post from that forum.

I have a 50% share in a house with my brother which was gifted to us by our parents.We own it outright and there has never been a mortgage on the property. My brother lives there with friends who rent.

I am interested in getting on the property market myself by buying a property but don't have a lot of money for a deposit and I have heard about possibilities of using my share of the house as some sort of collateral towards a deposit or securing a loan against my share of the property. Can anyone explain a bit more about how possible this is and how it would be done?

Could this apply to Buy to Let mortgages as well if I wanted to buy a property as an investment?

Thanks

Pixie5740

There's such a thing as a Let to Buy mortgage where you remortgage an existing property, let it out and use the equity released as a deposit for another property. However, I don't think you could get such a mortgage on your own as you jointly own the property with your brother and since your brother is an owner living in the property he wouldn't be eligible for a LTB mortgage.

Your options are to get your brother to buy your share of the property,to get him to agree to sell the property, or to save up a deposit.